The First Wave: Company Owned Units Pioneered BPO in India
Company owned units such as American Express, General Electric (GE) and Citibank triggered the trend of outsourcing back office operations and call center services to India. Since then several banks, insurance companies, financial services, airlines and manufacturing companies have set up back office service centers in India.

The Second Wave: Venture Funded New Companies - Currently Top The Third Party Vendor List
Over the last few years, a number of experienced professionals have set up start-up operations in India. Often the entrepreneurs are ex-senior employees of the First Wave units. Generally such start-ups have been funded by venture capital funds.

The Third Wave: Leading IT Services Companies enter BPO
Given the magnitude of such opportunity, as well as natural synergies with the software services business, most of the IT services companies have ventured into BPO.
o 'Build' is the Preferred Entry Strategy
o 'Buy' Strategy is gaining acceptance

The Indian BPO Industry has passed through waves one and two. It is now riding the third wave.

Figure: From a "Vendor" Context to a "Partner" Context

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* Contributed by: -
Priyanka Ghosh & Alvika Derhgawen,
PGDIM, IM-11,
NITIE, Mumbai.